John Keells Holdings PLC · CSELK:JKH.N0000
John Keells — Q2 2023/24 Earnings Presentation
31 slides from John Keells's earnings presentation, November 2023
Slide 1: JKH Investor Presentation: Review of Q2 2023/24
JKH Investor Presentation Review of Q2 2023/24 Version 3.0
Slide 2: EBITDA: For the quarter ended 30 September
EBITDA: For the quarter ended 30 September EBITDA* Q2 2023/24 Q2 2022/23 Variance Variance (%) (Rs. Million) Transportation 1,700 3,035 (1,335) (44) Consumer Foods 1,237 1,009 228 23 Retail 1,983 1,963 19 1 Leisure 1,065 1,005 60 6 Property (435) (279) (156) (56) Financial Services 1,702 1,104 598 5
Slide 3: EBITDA: For the six months ended 30 September
EBITDA: For the six months ended 30 September EBITDA* YTD 2023/24 YTD 2022/23 Variance Variance (%) (Rs. Million) Transportation 4,118 7,586 (3,468) (46) Consumer Foods 1,956 2,242 (286) (13) Retail 3,970 4,282 (312) (7) Leisure 1,349 2,874 (1,526) (53) Property (248) (419) 171 41 Financial Services
Slide 4: Quarterly EBITDA movement
Quarterly EBITDA movement EBITDA 2022/23 2023/24 (Rs. Million) Q2 Q3 Q4 Q1 Q2 Transportation 3,035 1,499 1,546 2,419 1,700 Consumer Foods 1,009 402 651 720 1,237 Retail 1,963 2,320 2,230 1,987 1,983 Leisure 1,005 1,898 3,787 284 1,065 Property (279) (312) 516 187 (435) Financial Services 1,104 2,855
Slide 5: Finance Cost: For the quarter ended 30 September
Finance Cost: For the quarter ended 30 September Finance Cost Q2 2023/24 Q2 2022/23 Variance Variance (%) (Rs. Million) Transportation 178 229 (51) (22) Consumer Foods 173 210 (38) (18) Retail 832 1,137 (306) (27) Leisure 2,928* 761 2,167 285 Property 27 (118) 145 123 Financial Services - (277) 277
Slide 6: Analysis of Finance Cost
Analysis of Finance Cost Finance Cost Q2 2023/24 Q1 2023/24 Q4 2022/23 (Rs. Million) Transportation 178 190 178 Consumer Foods 173 249 332 Retail 832 971 1,082 Leisure 2,928* 843 864 Property 27 31 25 Financial Services - - - Other, incl. IT and Plantation Services 2,677 3,061 2,954 Group 6,815 5,34
Slide 7: PBT: For the quarter ended 30 September
PBT: For the quarter ended 30 September PBT Q2 2023/24 Q2 2022/23 Variance Variance (%) (Rs. Million) Transportation 1,530 2,799 (1,249) (45) Consumer Foods 779 547 233 43 Retail 500 102 398 388 Leisure (2,721) (1,240) (1,481) (119) Property (395) (365) (30) (8) Financial Services 1,695 1,082 613 57
Slide 8: Key financial indicators
Key financial indicators (Rs. Million) Q2 2023/24 Q1 2023/24 31 March 2023 Group debt* excl. leases and incl. convertible debenture 240,189 227,759 229,749 Group debt excl. leases and convertible debenture 220,279 208,635 211,369 Cash and cash equivalents 98,771 96,760 100,340 Net debt excl. leases
Slide 9: Overview of ESG initiatives
Overview of ESG initiatives • The Group’s carbon footprint per million rupees of revenue increased by 19% to 0.44MT. • The Group’s water withdrawal per million rupees of revenue increased by 30% to 9.25 cubic meters. • The increase in the above ratios is mainly due to the decline in Group revenue in
Slide 10: Transportation: Port of Colombo
Transportation: Port of Colombo Capacity Enhancements Port of Colombo Volumes 900 846 805 808 780 770 800 700 TEU'S 000 585 600 480 500 440 446 435 431 482 400 440 416 408 300 Q2 Q3 Q4 Q1 Q2 2022/23 2023/24 SAGT SLPA CICT *SLPA includes volumes of JCT and ECT terminals 10
Slide 11: WCT-1: Construction progress
WCT-1: Construction progress ECT CICT WCT-1 November 2022 September 2023 • The groundwork on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well with all construction work relating to the first phase of the project (800 meters of quay length) being awarded. • Overall timel
Slide 12: Transportation: Q2 2023/24
Transportation: Q2 2023/24 Port Business (South Asia Gateway Terminal) Q2 Earnings Update: Volumes 2022/23 2023/24 Q2 Q2 (TEUs) (Rs. mn) Q2 Q3 Q4 Q1 Q2 2023/24 2022/23 SAGT 439,605 416,381 408,261 445,515 482,255 EBITDA 1,700 3,035 Domestic: ▪ In Q2 of 2022/23, LMS recorded a substantial Transshipme
Slide 13: Consumer Foods: Q2 2023/24
Consumer Foods: Q2 2023/24 Q2 Earnings Update: Key performance 2022/23 2023/24 Q2 Q2 indicators (%) (Rs. mn) Q2 Q3 Q4 Q1 Q2 2023/24 2022/23 Volume growth: EBITDA 1,237 1,009 Frozen Confectionery 6 (19) (30) (10) (2) ▪ Both the Beverages and Frozen Confectionery Beverages (CSD) 13 (19) (40) (3) 5 bus
Slide 14: Cost of Sales analysis of the Beverages business
Cost of Sales analysis of the Beverages business Cost of sales composition – Indexed price of raw materials Q2 2023/24 vs Q2 2022/23 Index: Q1 FY20 = 100 67% 68% 350 300 250 200 30% 30% 21% 150 100 50 3% 2% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 15: Cost of Sales analysis of the Frozen Confectionery business
Cost of Sales analysis of the Frozen Confectionery business Cost of sales composition – Indexed price of raw materials Q2 2023/24 vs Q2 2022/23 82% Index: Q1 FY20 = 100 75% 600 500 400 44% 300 31% 200 18% 14% 7% 100 4% 0 Raw materials and Energy costs Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 16: Retail: Q2 2023/24
Retail: Q2 2023/24 Supermarket business Q2 Earnings Update: Key performance 2022/23 2023/24 Q2 Q2 (Rs. mn) indicators (%) Q2 Q3 Q4 Q1 Q2 2023/24 2022/23 Same store sales EBITDA 1,983 1,963 73.7 40.6 30.1 22.8 10.4 growth ▪ The Supermarket business recorded a strong Same store footfall performance in
Slide 17: Retail: Q2 2023/24 vs Q2 2022/23
Retail: Q2 2023/24 vs Q2 2022/23 Same Store Same Store ABV Sales Footfall (0.2)% 10.4% 10.6% Q2 2022/23: Q2 2022/23: Q2 2022/23: ▪ Sustained growth was maintained ▪ Customer Count was maintained despite the ▪ September 2022 NCPI (YoY) – 73.7%. despite the challenging operational challenging operatio
Slide 18: Tourist arrivals to Sri Lanka: recovery trend post-pandemic
Tourist arrivals to Sri Lanka: recovery trend post-pandemic 280 Sri Lanka - Monthly Tourist Arrivals Month 2019 2020 2021 2022 2023 240 Jan 244,239 228,434 1,682 82,327 102,545 200 Feb 252,033 207,507 3,366 96,507 107,639 Mar 244,328 71,370 4,581 106,500 125,495 Arrivals ('000) 160 Apr 166,975 - 4,1
Slide 19: Tourist arrivals to the Maldives: recovery trend post-pandemic
Tourist arrivals to the Maldives: recovery trend post-pandemic 200 The Maldives - Monthly Tourist Arrivals Month 2019 2020 2021 2022 2023 160 Jan 151,552 173,347 92,103 131,764 172,499 Feb 168,583 149,785 96,882 149,008 177,915 120 Mar 162,843 59,630 109,585 150,739 173,514 Arrivals ('000) Apr 163,1
Slide 20: JKH Group: Leisure occupancies
JKH Group: Leisure occupancies 100% Easter Sunday Peak of social unrest terror attacks in Sri Lanka 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY2
Slide 21: Leisure: Q2 2023/24
Leisure: Q2 2023/24 Q2 Earnings Update: 2022/23 2023/24 Q2 Q2 Key indicators (Rs. mn) Q2 Q3 Q4 Q1 Q2 2023/24 2022/23 Colombo Hotels* EBITDA 1,065 1,005 Occupancy (%) 29 43 62 49 67 ▪ The Sri Lankan Leisure businesses continued ARR (USD) 62 65 63 70 69 to record an improvement in performance, with an
Slide 22: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Initial sketch by Sri Lankan-British Architect, Cecil Balmond The 3D rendering of “Cinnamon Life” “Cinnamon Life” under construction 22
Slide 23: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Rendering of “Cinnamon Life” Actual construction progress of “Cinnamon Life” 23
Slide 24: Cinnamon Life Integrated Resort: Gaming
Cinnamon Life Integrated Resort Gaming Further to the ongoing discussions with prospective gaming operators, WPL entered into a Memorandum of Understanding with a leading international gaming operator. This MOU consists of the framework for investing into and operating of a casino at the Cinnamon Li
Slide 25: Cinnamon Life: Change in functional reporting currency
Cinnamon Life Integrated Resort Change in the functional reporting currency of Waterfront Properties (Private) Limited (WPL) The functional reporting currency of WPL, the project company of the Cinnamon Life Integrated Resort, was changed from USD to LKR given the impending transition of the project
Slide 26: Cinnamon Life Integrated Resort
Cinnamon Life Integrated Resort Conferencing capacity (~5,000 pax) in five venues and car park facility (2,330 slots) 800 guest room hotel, including conferencing, banqueting, 7 speciality restaurants (~1,300 pax) and entertainment facilities The hotel and conferencing space collectively entails: -
Slide 27: Growth potential - MICE market
Growth potential - MICE market • The number of outbound MICE travelers from India and China was at 2 million and 5 million (pre-pandemic). • Colombo is well poised to take advantage of the growing outbound MICE travel from India. • The ARR and Conference Package Rate is lower in Colombo than India.
Slide 28: Property: Q2 2023/24
Property: Q2 2023/24 Cumulative sales update: Q2 Earnings Update: Number of units Number of Q2 Q2 (As at 30 September 2023) (Rs. mn) sold remaining units 2023/24 2022/23 Cinnamon Life: EBITDA (435) (279) The Residence at Cinnamon Life 145 86 ▪ The EBITDA includes profit recognition from The Suites a
Slide 29: Viman
Viman In September 2023, John Keells Properties launched its latest residential project, ‘Viman’, located in the heart of Ja-Ela, a suburban area in close proximity to Colombo. Spread across six acres, offering a harmonious blend of modern comforts with 418 apartments, ‘Viman’ is designed to provide
Slide 30: Financial Services: Q2 2023/24
Financial Services: Q2 2023/24 Union Assurance PLC Q2 Earnings Update: Q2 Q3 Q4 Q1 Q2 Q2 Q2 Key performance 2022/23 2022/23 2022/23 2023/24 2023/24 (Rs. mn) indicators (%) (Jul-Sep (Oct-Dec (Jan-Mar (Apr-Jun (Jul-Sep 2023/24 2022/23 2022) 2022) 2023) 2023) 2023) EBITDA 1,702 1,104 GWP growth 3 3 5 2
Slide 31: THANK YOU
THANK YOU This document was produced by John Keells Holdings PLC for information purposes only. The information contained in this document are a review of the financial information pertaining to Q2 2023/24 and does not constitute an issue prospectus or a financial analysis. This Investor Presentatio
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